Can I enter IOB considering it to have bottomed out?
AVOID INDIAN OVERSEAS BANK FOR NOW
IOB is currently trading at Rs 16.25. Its 52-week high/low stand at Rs 28.70/Rs 13.07 made on October 26, 2017 and July 17, 2018, respectively. Considering the daily time frame, the stock is trading in a downbeat since many years and recently gave a breakdown of head & shoulders pattern at Rs 22.15 on February 2, 2018. Recently, the stock formed Doji at 52-week low level and bounced back up to Rs 16.38 forming a rounding pattern. However, the stock reversed and has hit the 14-period RSI negative crossover. Moreover, this is a penny stock and has very little movement on a daily basis. We suggest you avoid for now.